In a sophisticated fraud scheme, a Chinese individual amassed over 3 million yuan (approximately £332,435) by using thousands of smartphones to artificially inflate viewer counts on livestreams. The case, which unfolded in Zhejiang province-a central hub of China's booming livestream industry-has led to a rare crackdown on such deceptive practices, highlighting broader concerns over online fraud in the digital age.
The individual, identified only by his surname Wang, was recently sentenced to 15 months in prison and fined 50,000 yuan (about £5,607) for "illegal business operations." This sentence marks a significant step by Chinese authorities in addressing the manipulation of digital engagement metrics-a practice known as "brushing." Wang's operation involved using 4,600 smartphones controlled via specialized cloud software to boost live stream views, a tactic that not only inflated his clients' online presence but also misled consumers.
"Brushing" is commonly associated with e-commerce, where sellers create fake orders to boost their products' visibility and ratings. However, Wang adapted this strategy to the livestreaming sector, revealing a new frontier for digital fraud. By manipulating real-time metrics like viewer counts and interactions, Wang attracted more genuine viewers to his clients' streams, deceiving both consumers and the platforms themselves.
To carry out his scheme, Wang employed virtual private networks (VPNs) and sophisticated network hardware sourced from a tech company in Changsha. This setup allowed him to remotely control the massive network of smartphones and manipulate interactions on targeted livestreams effectively. According to Wang, the cost of operating one mobile phone was approximately 6.65 yuan (less than £0.80) per day, with fees structured around the duration and number of phones engaged in each session.
By March 2023, Wang had accumulated a significant sum by offering his fraudulent services to livestreamers eager to boost their visibility and attract sponsors. Despite occasional glitches where fake viewer accounts failed real-name authentication on platforms, Wang managed to circumvent security measures, underscoring vulnerabilities in digital platform regulations.
The prosecutor handling Wang's case noted to Ningbo Evening News that there were "certain loopholes in the account management of the live-streaming platform," suggesting systemic issues that extend beyond individual misconduct. While the exact source of the smartphones Wang used remains undisclosed, hints at potential illicit activities in the mobile phone recycling market were mentioned.
This incident is part of a broader issue affecting China's digital commerce landscape, where traffic fraud has become a pervasive problem on livestreaming platforms and e-commerce websites. The public outcry over such practices has intensified calls for stricter regulations to curb online fraud, which not only distorts market dynamics but also erodes consumer trust.
